DETJEN ENTERPRISES, INC. d/b/a SHERM’S PIGGLY WIGGLY Employer
No. S1900053MW
Wisconsin Workers Compensation
State of Wisconsin Labor and Industry Review Commission
October 14, 2020
UNEMPLOYMENT
INSURANCE CONTRIBUTION LIABILITY
DECISION1
Michael H. Gillick, Chairperson
The
commission modifies and affirms the appeal tribunal decision.
Accordingly, Detjen’s Enterprises, Inc. is an optional
successor to the unemployment reserve account of P&G,
Inc.
By the
Commission:
David
B. Falstad, Commissioner, Georgia E. Maxwell, Commissioner
Procedural
Posture
This
case is before the commission to determine whether the
employer, Detjen Enterprises, Inc., d/b/a Sherm’s
Piggly Wiggly (“Detjen” or
“transferee”), is an optional successor to the
unemployment insurance (UI) reserve account of P&G, Inc.,
f/d/b/a Sherm’s Piggly Wiggly (“P&G” or
“transferor”). An administrative law judge (ALJ)
of the Unemployment Insurance Division of the Department of
Workforce Development held a hearing and issued a decision.
The commission received a timely petition for commission
review. The commission has considered the petition and the
positions of the parties, and it has reviewed the evidence
submitted at the hearing.
Findings
of Fact and Conclusion of Law
1.
Piggly Wiggly Midwest, LLC (“PWM”) is the agent
and provider of franchise, accounting, and administrative
filing services for about 90 Piggly Wiggly grocery stores,
including Detjen and P&G.
2.
Detjen has been doing business as a Piggly Wiggly franchisee
in Randolph, Wisconsin since 2004.
3. On
April 22, 2018, Detjen acquired the Piggly Wiggly store in
Princeton, Wisconsin from P&G, including all of its
employees. PWM helped facilitate the acquisition and was
responsible for all of the associated paperwork.
4. It
was the expectation of the parties that Detjen would be the
successor of P&G.
5.
Based on the date of acquisition, April 22, 2018, the
application for transfer of the UI account and designation of
successor was to have been completed by filing a Report of
Business Transfer (Form UCT 115-E) by October 31, 2018. PWM
did not file the report by the deadline.
6. The
manager of PWM’s accounting department had worked for
PWM for 40 years. Although his department provided assistance
to Piggly Wiggly franchisees when buying or selling stores,
it was rare for a transferee with one or more existing stores
to use an existing legal entity to acquire a new store (and
its UI account).
7. With
most acquisitions, a new legal entity is created for the
acquired store (the transferee), and that entity opens a new
UI account. The department then sends a Report of Business
Transfer form to the new entity to complete and, if desired,
to apply to acquire the account experience of the transferor.
8.
Detjen had a UI account for the Randolph Piggly Wiggly store
when it acquired the Princeton Piggly Wiggly store from
P&G. Rather than establish a new legal entity for the
Princeton store, Detjen brought the acquired store into its
existing business. Because Detjen did not need to establish a
new UI account, a Report of Business Transfer form was not
sent to PWM to complete on behalf of P&G.
9.
During the four-year period prior to its sale to Detjen,
P&G had not had any employees file claims for UI
benefits. The same was true for Detjen.
10. PWM
did not receive from the department any notices of
unemployment claims having...